Your Down Payment

Lots of borrowers can easily qualify for several different kinds of mortgages, but they don't have a lot of cash to pay a down payment. Want to look into getting a new home, but don't know how you should put together a down payment?

Cut expenses and save. Turn your budget inside out to discover ways you can cut expenses to go toward your down payment. There are bank programs through which some of your take-home pay is automatically transferred into a savings account each pay period. You could look into some big expenses in your budget that you can do without, or trim, at least temporarily. For example, you might decide to move into less expensive housing, or skip a vacation.

Sell items you do not need and find a part-time job. Maybe you can find an additional job to get your down payment money. You can also get creative about the things you can sell. A closetful of small things could add up to a fair amount at a garage or tag sale. You can also explore what any investments you have may sell for.

Borrow your down payment from your retirement plan. Check the parameters of your particular program. Some homebuyers get down payment money from withdrawing what they need from Individual Retirement Accounts or borrowing from 401(k) plans. Be sure you understand the tax consequences, repayment terms, and possible penalties for withdrawing early.

Ask for help from generous members of your family. Many buyers somtimes get down payment help from thoughtful parents and other family members who are eager to help get them in their own home. Your family members may be happy at the chance to help you reach the milestone of owning your first home.

Research housing finance agencies. These agencies extend provisional mortgage loans to low and moderate-income buyers, buyers with an interest in rehabilitating a house within a specific part of the city, and other particular types of buyers as specified by each agency. Working with a housing finance agency, you can receive an interest rate that is below market, down payment assistance and other incentives. Housing finance agencies can help you with a reduced rate of interest, help with your down payment, and offer other benefits. The central purpose of non-profit housing finance agencies is to promote residence ownership in specific places.

Find out about low-down and no-down mortgage loans.

  • FHA loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low to moderate-income families get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in getting mortgage loans. FHA helps first-time homebuyers and others who would not be eligible for a typical mortgage loan on their own, by offering mortgage insurance to private lenders. Down payment totals for FHA loans are smaller than those of traditional mortgages, even though these loans hold average interest rates. Closing costs can be covered by the mortgage, while the down payment may be as low as 3 percent of the total.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan assists service people and veterans. This specialized loan does not require a down payment, has limited closing costs, and provides a competitive rate of interest. While the VA doesn't actually provide the mortgages, it does certify eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close at the same time as the first. In most cases the first mortgage is for 80% of the purchase amount and the "piggyback" is for 10%. The homebuyer covers the remaining 10%, rather than come up with the typical 20% down payment.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow part of the seller's home equity.. You would finance the majority of the purchase price with a traditional lender and borrow the remainder from the seller. Often, this kind of second mortgage has a higher rate of interest.

No matter how you gather your down payment, the satisfaction of owning your own home will be just as great!

Want to discuss your down payment? Give us a call at 9727982110.

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4815 State Hwy 121 Suite 2
The Colony, TX 75056